Further De-leveraging Expected in FY22 ~1.9x leverage at quarter end with further progress expected in near-term Increasing Production Higher Oil Prices Improving Hedging Outlook ? ? ? Reducing Absolute Debt ? Increased Debt Reduction Potential Expect ~$550-600 million total debt reduction in 2022 at current prices • Free cash flow of $220 million in 1Q22 • Ghana pre-emption proceeds of ~$118 million received from Tullow in March • Additional 2Q-4Q free cash flow at strip: ~$200+ million • Shell exploration success (capped at $100 million.
In my business background, I would always try to "underpromise" but "overdeliver" especially in a presentation of this nature. For Kosmos to put this into 1QTR shareholder presentation expresses very high confidence even in the context of "potential further sources of debt reduction."